Kansaneläkelasta

Kansaneläkelasta, or the Finnish Pension Fund, is a state-administered pension system in Finland. It is designed to provide financial security to individuals during their retirement years. The fund is funded through mandatory contributions from employers and employees, as well as through investment returns. The contributions are based on a percentage of the employee's salary, typically around 7.15% for employers and 1.75% for employees, as of 2023.

The Kansaneläkelasta is managed by the Finnish Social Insurance Institution (Kela), which also administers other social insurance programs in Finland. The fund is invested in a diversified portfolio of assets, including stocks, bonds, and real estate, to generate returns and ensure the sustainability of the pension payments.

Eligibility for the Kansaneläkelasta is based on the number of years an individual has contributed to the fund. The minimum contribution period is 10 years, and the pension amount is calculated based on the average salary during the contribution period and the number of years contributed.

The Kansaneläkelasta is a key component of Finland's social welfare system, providing a safety net for individuals and families during their retirement years. The fund is funded through a combination of mandatory contributions and investment returns, ensuring its long-term sustainability. The pension system is designed to be progressive, with higher pensions for those who have contributed more to the fund.